If you are looking to start a business that has huge growth and profit potential and that requires minimal startup capital and no formal qualifications, then you will find more than enough opportunities in the foods and snacks industry. One of such opportunities is potato chips production.
The demand for potato chips is always high due to two main reasons. First, potato chips eliminate hunger quickly even when taken in little quantity. Second, they are made from purely natural products—potato and oil, which explains why many health-conscious consumers prefer them to most other snacks that are made using artificial ingredients with some degree of health risks.
Potato chips are more popular than you can imagine. Globally, potato chips are worth more than a $16 billion dollar a year industry. Little wonder, many big brands like Frito-Lay and Zapps are into potato chips production.
The presence of big brands notwithstanding, there are many small businesses in the potato chips industry. And the market is large enough to accommodate new players.
Do you have an entrepreneurial drive?
Are you willing to compete and carve out your own niche within the snack foods industry?
Do you have the right recipes to make your products stand out?
Then starting a potato chip business might be the right decision to make.
Read to learn the guidelines for starting a successful potato chips business:
Starting a Potato Chips Production Company – Sample Business Plan
1. Conduct research about the business
Your first step towards starting a successful potato chips production business is to find out more about the business. This will help you understand the fine details of the business and figure out whether it’s a kind of business you really want to get into or not.
You can visit the owner or manager of a potato chips company. Tell them about your plan to start your own potato chips business and ask questions on everything you need to know about the business. Visit their kitchen as well as their front end to see how the business operates on a daily basis. Also, try to experience how the business attends to consumers or distributors.
However, you must bear in mind that the individual your contact might be reluctant to let you in on many important details if they see you as a potential competitor. So, it is recommended that you visit a potato chips production facility outside your locality, where you will not be deemed a direct competitor.
2. Write a business plan
Starting a business requires adequate planning, and a potato chips production business is no exception. The best way to plan your business is to create a comprehensive and near-accurate business plan. This will serve as a systematic guide to launching your business successfully and running it effectively afterwards.
Your business plan will include a detailed overview of your business, your mission and objectives, your target market, your competitors and marketing strategies, your unique selling proposition, your required startup capital and operation costs, your projected income for the first three years, your management summary, and your exit strategy.
3. Register your business and obtain necessary permits
You will also need to contact the appropriate local agency to register the name of your business. This should come after you have chosen a good name that reflects what your business offers.
As with any other business, you will be required to obtain certain licenses and permits before you can begin operations. These requirements vary by state and country, so you need to visit the appropriate government agencies or contact a seasoned business consultant to find out what obtains in your state or country.
After finding out the licensing requirements, you need to obtain all necessary licenses and permits. Since you are starting a business that produces consumables, a health check will most likely be conducted before you are give the nod to begin operations.
4. Find a good location and purchase equipment
Since the success of your potato chips production business hinges largely on your location, you want to choose it carefully. Your ideal location is one that is close to sources of the raw materials and other supplies you will need, and also close to your target market. In addition, your chosen location must abound with electric supply, water, and other utilities you will need for potato chips production.
After securing a good location, purchase and install the necessary equipment and machinery. Be sure to acquire equipment of high quality, as this will save you huge maintenance and replacement costs in the long term.
5. Hire employees
No doubt, you will require the services of other people in your potato chips production company. From office staff to kitchen staff, hire competent people who have had enough experience working in similar capacity.
6. Find suppliers
Since your business is the manufacturing type, you need to find suppliers that will constantly provide the raw materials and supplies you will need, such as raw potatoes, oil, packaging materials, and so on. For each commodity, have more than one supplier, so that your business won’t suffer if a supplier runs out of the commodity they supply your business.
After taking all these steps, then you are good to go. Open your doors for business and launch marketing campaigns to attract distributors and consumers.